The 'Double Entry System' was first codified by: MCQ with Answer and Explanation
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Question #1
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A: The Going Concern concept justifies the charging of depreciation. R: Depreciation allocates the cost of an asset over its useful life. Choose the correct option.
Correct Answer: Option A
Explanation:
The Going Concern concept assumes the business will continue indefinitely, which justifies capitalizing asset costs and depreciating them over their useful lives. R correctly explains the mechanism of depreciation.
The Going Concern concept assumes the business will continue indefinitely, which justifies capitalizing asset costs and depreciating them over their useful lives. R correctly explains the mechanism of depreciation.
This question belongs to:
Accountancy and Statistics
Accountancy and Book Keeping
Question #2
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The maximum number of members in a public company is:
Correct Answer: Option B
Explanation:
Public company has no maximum limit on number of members.
Public company has no maximum limit on number of members.
This question belongs to:
Accountancy and Statistics
Accountancy and Book Keeping
Question #3
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Under the Income Tax Act, if a taxpayer incurs a short-term capital loss of ₹2,00,000 and a long-term capital gain of ₹1,50,000 in the same year, what is the net taxable capital gain?
Correct Answer: Option D
Explanation:
Short-term capital loss can be set off against both STCG and LTCG. Here, the STCL of ₹2,00,000 is set off against the LTCG of ₹1,50,000. The remaining STCL of ₹50,000 is carried forward. The net taxable capital gain for the year is Nil.
Short-term capital loss can be set off against both STCG and LTCG. Here, the STCL of ₹2,00,000 is set off against the LTCG of ₹1,50,000. The remaining STCL of ₹50,000 is carried forward. The net taxable capital gain for the year is Nil.
This question belongs to:
Accountancy and Statistics
Accountancy and Book Keeping
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